CBA: Rate hikes whack discretionary spending

CBA has released its household spending intentions (HSI) for June, which is based on a sample of 2.5 million Australian households. The index combines internally generated CBA spending and lending data with publically available Google trends search data.

While the overall HSI index rose by 0.9% in June to an equal record high, there was clear evidence of weaker discretionary spending following the recent interest rate hikes by the Reserve Bank of Australia (RBA).

The gains in the HSI Index for June were relatively narrowly based, with big gains recorded for Transport (including higher petrol prices), Education and Household services.